Capital pleased with favourable demand as it secures new contracts

Mining servies company Capital has announced several material contract developments across its drilling, mining and laboratory operations in a favourable demand environment.

"We are pleased to announce today that we continue to capitalise on the highly favourable demand environment and are starting to deploy the funds recently raised to support our growth strategy. We are seeing this increasing demand across all parts of the business, with contract wins . . . spanning mining, drilling and MSALABS.

"In mining, we have recommenced waste stripping mining at the Sukari gold mine, utilising our remaining fleet at site. Our drilling business has secured a multi-year grade control drilling contract with Montage Gold, in Côte d'Ivoire. MSALABS has secured a multi-year contract with Equinox Gold, underpinning the decision to construct a commercial laboratory in Newfoundland and deploy another PhotonAssay unit," chairperson Jamie Boynton points out.

At the Sukari mine, in Egypt, Capital has been awarded a waste stripping cutback services contract that will use Capital's existing equipment still on site supported by a number of newly bought trucks and additional ancillary equipment.

The contract term is 18 months and is expected to start in the first quarter of this year, with the existing equipment, followed by the new equipment phasing in throughout the second quarter.

Capital has also been awarded a five-year grade control drilling contract at Montage's Koné gold project, in Côte d'Ivoire, with mobilisation to start in the second quarter of this year.

Further, Capital's MSALABS subsidiary has been awarded a five-year commercial laboratory services contract at Equinox Gold's Valentine project, in Newfoundland, Canada.

This contract will underpin the construction of a new commercial laboratory in Newfoundland using PhotonAssay technology, as well as providing sample preparation and multi-element analysis.

Capital notes that the group has also been awarded several smaller contract extensions and additions across its existing drilling contracts and several smaller laboratories services contracts.